For the new entrepreneur, there are few factors with a higher correlation to unbridled success or devastating failure than the ability to raise capital. In an economy of questionable strength, dreaming up a shiny new venture of revolutionary proportions is no longer the battle; the new challenge is finding the minds that will fuel that venture with dollars. In New York, one business-woman named Yao-Hui Huang has borrowed from popular culture to devise a sensational way to bring new ventures face-to-face with potential investors.

Admittedly, the project known as the Gauntlet is far from the first organized attempt to bring entrepreneurs and investors together. How this differs, is that it emulates the strategies of the highly successful TV show: American Idol. Similar to the show, which employs a panel of industry experts, the Gauntlet has a panel of judges with expertise in law, accounting, finance, technology, and investment.

Contestants who make it through the rigorous application process are chosen in groups of three to present at the monthly gathering. In front of the panel and an audience of over 100, entrepreneurs get seven minutes to pitch their venture along the areas of: problem, solution, market, industry, overview, operations, and financials. Presenters are then inundated with feedback from the audience and panel, and a select few go on to receive venture capital.

It is nice to see a refreshing approach to matching the right investors with the right entrepreneurs. Also, this structure provides the ability to share a business model with peers and experts while allowing the entrepreneur an attractive opportunity to refine, revisit, and hopefully improve areas of their business strategy.

iControl provides web-enabled newspaper billing consolidation services
to newspaper vendors and retailers, including CVS and Barnes &
Noble. With more than 8,000 active accounts, iControl is the largest
provider of such services in North America by a ratio of more than 2-to-1.

Growthink will be consulting iControl on their strategic planning and business development initiatives.

For more information on our work with iControl, please view iControl's recent announcement here.

Pop! Technology

Pop! Technology is a Dallas-based creator of 'active' barcode information systems used by the food, beverage, pharmaceutical and health services sectors.

The company's technology transforms a standard barcode into an interactive barcode that provides real time information about the status and condition of their products at all points of the supply and distribution chain, from manufacture to end user.

Your business plan must not only define your competition, but demonstrate your venture's distinct competitive advantage. This video explains how to create an effective Competitive Analysis section for your business plan.

There is an age-old dilemma out there, which all entrepreneurs will come across at some point in their career: To be, or not to be... the CEO, that is the question!

When envisioning the ideal CEO, undoubtedly many images come to mind: A charismatic persuader, a visionary, a multi-tasker, a passionate leader. The real world expectations of a CEO can be so varied and so all-encompassing, that it can be a daunting hat to consider.

Some entrepreneurs tackle this issue with the notion that they are obligated to lead their company from the CEO chair, while others will avoid the title at any cost. These stances are seldom the result of any actual measure of their own abilities, but rather from pre-conceived notions of what is expected of a Chief Executive Officer, and what skills they assume are needed to effectively assume the role.

To add a dose of empirical data to the conversation, venture capitalist Seth Levine has released a rubric that he and his colleagues use when evaluating a CEO. Now that we know what the VCs use when sizing up leaders, it might not be such a bad idea to go through this rubric yourself and see how you'd stack up.

CEO Scorecard

(rate performance on a 1-5 scale, 1 being least favorable and 5 being most favorable; provide support for your rating in the space provided):

Vision: Creates vision and strategy. Communicates vision and strategy both internally and externally.

Leadership: Ensures the support and execution of the vision and strategy by:

1. Establishment and communication of priorities;
2. Driving change for improvement throughout the organization;
3. Team-building; and
4. Creation of high performance environment.

Operating Management: Develops and executes sound long-term and annual business plans in support of approved strategy. Manages operations and resources efficiently and effectively.

Shareholder/Investor/Financial Community: Serves as chief spokesperson, communicating effectively with shareholders and stakeholders. Is well regarded and respected by investment and financial community.

Public Relations: Ensures that the company and its operating units contribute appropriately to the well being of their communities and industries. Represents the company in community and industry affairs.

Board Relations: Works effectively with the Board of Directors to keep them fully informed on all important aspects of the status and development of the Company. Facilitates the Board's governance, compositions, and committee structure. Implements Board policies and recommends policies for Board consideration. Supports a relationship characterized by trust, mutual respect, open communication and responsiveness to feedback. Uses Board meetings effectively.

As you can see, the criteria for a great CEO (at least in the eyes of these Venture Capitalists) aren't as elusive as many people think. If you've got these skills, you're in good shape. If not, it might be time to start the CEO hiring process.

What do you think about these criteria? Which of these factors are truly the most important? Are there other factors you think are missing?

Last night I went to the art fair at my kids’ elementary school. My son, Max, who’s in 2nd grade had created a picture of his ideal city (see below).

I was thrilled to see that the Growthink office made the picture. :) (It’s also funny to see that the city just had to have a video store in it).

Interestingly, there was something in the picture that I noticed, that I bet no other parent noticed. Can you see it? What I’m referring to is the fact that the Growthink office is the only one with double-doors. Clearly, my son has been schooled in Consumption Theory, which states that the more frequently your clients consume your products or services, the wealthier you become. So, by having double doors, Growthink can let in and serve more clients and create greater wealth (so I can buy my son more video games of course).

My favorite examples of consumption theory in action are Prell Shampoo’s use of the word “REPEAT” in it’s directions to get customers to wash their hair twice (and thus consume twice as much shampoo) each time they bathe. Adding the words “Use Daily” to the directions may have doubled Prell’s consumption again. My other favorite example is Colgate toothpaste, which dramatically increased consumption in an even easier way; it simply increased the size of the opening from which the toothpaste comes out.

How can you get clients to consume more of your products and services?

The Customer Analysis section must convey the needs of your customers, and demonstrate how your company satisfies those needs. This video teaches how to analyze your company's customers for the purpose of gaining credibility with investors.

It's almost mid-way through 2008 and the investment ideas that VCs are excited about sound awfully reminiscent of those that were hot two, three years ago: digital media, social networking, Web 2.0 companies. In fact, when asking most VCs what sectors they are actively pursuing, the only one that sounds vaguely zeitgeisty is clean/green technology.

While the sectors that VCs are looking at may have remained the same over the past several years, their approach to them has changed. Very little "traditional" VC investing actually takes place anymore, so VCs need to be guaranteed returns of 200% or 300% of their investments in order to make a play. If your company can only offer 20% or 30% returns to an investor, it is better suited for an earlier stage investment from an angel investor or friends and family.

However, angel investors should always expect to get diluted in a valuation or further investment of the company. Some guidelines follow:

20%-30% of a bridge loan should be expected to be given up as a discount to angels

With strategic capital, anywhere from 10%-50%, with an average of 20%-30% can be given up

Also, VCs anticipate company valuations to come down in line with the recent credit crunch, with an expectation that deal valuations will drop as credit markets tighten. Based on the current market environment, cash is king.

Q: We just made
$94 billion dollars this year. What should we do
next?

A: Create a new
business plan.

It's never too late to update your business plan.

Car manufacturer Nissan (NASDAQ:
NSANY) demonstrated that fact this morning when they announced a new five-year
business plan. With a projected mix of market expansion, cutting-edge
technologies, and growing product lines, Nissan will strive to significantly
increase per-share dividend, and achieve five percent revenue growth on average
over the next five years.

The new strategy plan is called
Nissan GT 2012, with "G"
representing growth and "T" for trust. In addition to their product development
goals, Nissan is also shining a light in-house, and will put effort into
improving management, brand and service quality.

Typically, business plan creation is
associated with up and coming ventures, or existing companies eager to expand
into uncharted waters. Why then would Nissan, a company with clear expertise in
the automobile arena, and which raked in over $94 billion last year, commit to
such an intense overhaul?

Well, for starters, a business plan
is a static document. There is no doubt that business plans are integral to the
proper conceptualization of your business, the mapping of your desired financial
trajectory, and the fabrication of the strategies you will implement and execute
upon day in and day out. Much like your favorite jeans from high school,
however, it is possible to outgrow your current business plan. In fact, it might
be time for you to re-evaluate your current business strategy
today.

While especially crucial for
technology companies in industries like automotives or computer hardware, where
revolutionary progress is made at a break-neck pace, even companies in more
traditional areas might be in need of a refresher. For instance, a bank that did
not create a strategy to institute secure online banking as an option for their
customers may be in danger of losing customers to more tech-savvy competitors.

A new business plan can be just
what's needed to refresh your approach and effectively restructure your
business to gain competitive edge.

There are
many companies that can thrive following the tried and true methods of
traditional marketing initiatives. If you are one of those companies, it makes
sense to place yourself in the most familiar arenas, where potential customers
expect to see you. That is, if your intention is to compete with Coca-Cola for
mindshare, it is probably in your best interest to utilize bold advertisements
in print and television media.

But many other companies are
learning that traditional approaches are no longer sufficient to convey their
message and effectively convert the casual shopper into a paying customer or
even better, a brand evangelist. It used to be that you could distinguish your
company through lowest prices or a sparkling slogan. Now, however, these old
silver bullets will barely leave a dent in the mind of the modern consumer.
What can your company do today to stand out above the noise and clutter?

Enter:
Educational Marketing

Education-Based marketing is the act
of creating marketing materials and executing on strategies that distinguish
your company as a knowledgeable authority and resource in your area of
expertise. Notice the inclusion of "resource", as it is
uncharacteristic to antiquated marketing approaches. It follows the revised
premise that to be an active and valuable participant in the information age,
one must become an information center.

With multiple, seemingly identical
solutions popping up everyday in various industries, those that will shine are
those that can lend a hand to their audience, rather than using that same hand
to bludgeon their audience with an exhausted sales pitch.

Author David Frey has outlined not only how the
average customer has become numb to the sales pitch, but also the underlying goals
and burgeoning techniques of Educational Marketing. Your mission, should you
choose to accept it, is to flip the script, and focus on the questions of
customers rather than the sensational hype associated with a typical sales
pitch.

Say you were the owner of an oil
change store. A standard approach to market your business would be to place ads
that say:

“A new study finds that changing your oil every three months adds
$1,437.81 to the resale value of your automobile. Come in to find out the
effect of oil changes on the resale value of YOUR automobile.”

The information and help you can
provide your customer is the new hype. The emphasis of such techniques revolves
around the establishment of trust. By assisting in the open sharing of
information, you become an ally to your consumer, rather than the oft-avoided
vacuum cleaner salesman.

One main concern that can come with Educational
Marketing initiatives is "How do I monetize these new informed
shoppers?" Frey goes on to map out the packaging of one's educational
message through multimedia options such as video tapes, email courses, and
seminars which can extend the dialogue and thus your marketing window of
opportunity. Such long-term, or “drip” campaigns can have a tremendous impact
on the duration of your trust-based relationship and the lifetime value of your
prospective customers.